Legislature considers lowering vehicle fees

Florida motorists may get a big break if the House and Gov. Rick Scott go along with a Senate plan to dramatically cut fees for vehicle registrations and driver's licenses that took effect in 2009.

By Lloyd Dunkelberger and Joe Callahan

Florida motorists may get a big break if the House and Gov. Rick Scott go along with a Senate plan to dramatically cut fees for vehicle registrations and driver's licenses that took effect in 2009.Under a proposal outlined by Senate Appropriations Chairman Joe Negron, R-Stuart, the Senate would cut those fees by $220 million and offset the revenue loss by eliminating a tax credit for insurance companies."My priority is to get money to our constituents and not subsidize an industry that is doing very well," Negron said.Negron said he hoped to cut in half the 2009 fees, which were raised by the state to help close a budget gap during the Great Recession. The reductions could be dramatic for many Floridians. Here are some examples of the changes made in 2009:• The initial vehicle registration fee jumped from $100 to $225.• The renewal fee for a compact car, like a Honda Civic, jumped from $28.10 to $46.65. For mid-size vehicles, like an Accord, $36.10 to $57.65. For full-size vehicles, like a Ford F150, $46.10 to $71.15.• Motorcycle renewal fees jumped 70 percent from $24.60 to $41.65.• The initial fee for a driver's license went up from $27 to $48, with a renewal from $20 to $48.Senate President Don Gaetz, R-Niceville, backs the proposal."During a difficult budget year, the Legislature made the hard choice to increase certain fees associated with driving a vehicle in lieu of raising taxes, or taking draconian cuts to critical state services," Gaetz said in a statement. "However, times have changed and it is time that we reprioritize and evaluate ways to keep more money in the pockets of hard-working Floridians."While saying he wants to study the proposal further, House Speaker Will Weatherford, R-Wesley Chapel, called it "an interesting idea.""I'm not a big fan of those tag and title fees either," he said. "We'll have to take a look at it."This marks the second tax break that the Senate has targeted for potential elimination. Insurance companies pay a state tax on insurance premiums, but they also get a credit equal to 15 percent of the salary paid to company employees. That tax break is worth $237 million a year, according to state economists.The Senate is also proposing eliminating a tax break for banks to help pay for economic incentives that would be used to renovate Sun Life Stadium in South Florida.Negron has defended the potential elimination of incentives or tax breaks, saying the Legislature needs to eliminate outdated incentives before adopting new ones. The problem for Republicans is any vote to eliminate a tax break could bring criticism that they are actually raising taxes.The proposal could get a hearing as early as next week.Marion County Tax Collector George Albright said when state lawmakers decided to plug a budget hole with the fee hikes, they created "a huge burden on Marion County residents," and especially retirees."It would be a very welcome change to our constituents and I welcome it," Albright said of the proposed cuts.Along State Road 200, known for its retirement communities, one retiree said she would welcome some good financial news.Jeanne Allen, 73, a past treasurer of the Pine Run Residents Association, said retirees on fixed incomes have struggled because of rising costs of health insurance, a slowdown in Social Security raises, and increased expenses."We have already been taking a hit," Allen said. "This would be good news."The proposed lower registration fee was also popular with area automobile dealers. Cecil Ubide, the AutoMax sales manager, said the higher fees have affected his sales in recent years.He said registration and a new tag runs $425 — a cost so high it inspires some consumers to reconsider buying a vehicle."It (the proposed cut) would be great for us because the fees can make or break a deal," Ubide said.This report includes material from the Associated Press.